Pair Indicted in California Charter School Investigation

San Bernardino, CA — Today, a special criminal grand jury presented an indictment to the Presiding Judge of San Bernardino County. The indictment charges Charles Steven Cox, 59, of Phelan and Tad Theron Honeycutt, 44, of Hesperia with 117 felony counts ― 56 counts of Misappropriation of Public Funds, in violation of Penal Code Section 424, and 56 counts of Grand Theft, in violation of Penal Code Section 487 (a). The dollar amount loss is in excess of $5,000,000.00. Cox is accused in all 112 counts of Misappropriation of Public Funds and Grand Theft. Honeycutt is accused in 30 of those 112 counts.

Cox is also accused of failing to file a tax return, in violation of Revenue and Taxation Code Section 18706. Honeycutt is accused in three counts of failing to file a tax return in violation of the above-mentioned code, as well as being accused in one count of filing a false tax return, in violation of Revenue and Taxation Code Section 18705.

As a result of the indictment and arrest warrants issued, the defendants were arrested and arraigned in Superior Court in Victorville this morning before Judge Margaret Powers. Both defendants entered not guilty pleas. Bail is set at $1 million for Cox and $500,000 for Honeycutt. The next hearing is scheduled for September 7, 2007, in Superior Court in Victorville for Confirmation of Counsel and further proceedings.